Watchdog should prioritise probe into how banks treat politicians – minister
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The City minister has written to the UK’s financial watchdog urging it to prioritise an “important” review into whether people are being denied bank accounts due to their political views.
It follows claims by former Brexit Party leader Nigel Farage that his bank account had been shut down without justification and he had been refused services by several banks.
Andrew Griffith, in a letter to Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said the “strength of concern” on the issue means it needs to be prioritised by the watchdog.
He wrote: “While I recognise the importance of ensuring that appropriate measures are in place to prevent money laundering, it is crucial that an appropriate balance is struck and that these measures do not unduly burden or prevent democratically elected individuals, public officials, or their respective families from access to essential banking services.
The Government is clear that domestic PEPs should be treated in a manner which is in line with their risk, and that banks should not be closing individuals’ accounts solely due to their status as a PEP
“The Government is clear that domestic PEPs (politically exposed persons) should be treated in a manner which is in line with their risk, and that banks should not be closing individuals’ accounts solely due to their status as a PEP.”
He asked the FCA to push through any “easy wins along the way” of its probe.
Nigel Farage, who is now a presenter on news channel GB News, said he believed he was being targeted because of his status as a PEP.
It refers to someone who can be treated with extra due diligence by financial institutions, as they could pose a greater risk of abusing their public office position for personal gain.
But the Treasury said it would be a “serious concern if financial services were being denied to those exercising the right to lawful free speech”.
It had already asked the FCA to review the current rules and publish its findings, including any recommendations, a process which could take up to a year.
